Shares of Teva Pharmaceutical (TEVA) - Get Report surged more than 10% on Wednesday after the company posted adjusted earnings and sales that were a shade above analysts’ forecasts, though issued a tepid outlook for 2020.
The Israeli generic drugmaking giant posted fourth-quarter adjusted earnings of $683 million, or 62 cents a share, vs. $543 million, or 53 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of 61 cents a share.
Total sales were $4.47 billion for the quarter, above the $4.42 billion it brought in a year ago and above analysts’ estimates of $4.36 billion.
Sales of its multiple-sclerosis drug Copaxone came in at $387 million, above estimates of $352.8 million, while sales of Austedo, used to treat Huntington’s disease and tardive dyskinesia, came in at $136 million vs. estimates of $111.8 million.
“In 2019, we made great strides towards positioning Teva for renewed growth by completing our two-year restructuring plan, reducing our cost base by more than $3 billion, and reducing our net debt by more than $9 billion, all while maintaining our global leadership in generics, serving around 200 million patients every day,” CEO Kare Schultz said in a statement.
Teva noted in its fourth-quarter results that it revised some of its previously reported sales figures for its international segment, resulting in a decrease in sales by $165 million for the fourth quarter and $642 million for 2019.
Specifically, Teva said it presented revenue from its Israeli distribution business on a gross basis when it should have reported the revenue on a net basis, though the company noted there was no impact on gross profit, operating income, per-share earnings or cash flows.
For 2020, Teva said it now expects adjusted per-share earnings of between $2.30 and $2.55 on revenue of $16.6 billion to $17 billion. Analysts had been expecting earnings of $2.44 a share on revenue of $17.14 billion.
Shares of Teva were up more than 11% at $13.66 in trading on Wednesday.